 | | June 2021 E-News: Reshoring Sets New Record in 2020. U.S. Needs Much More. |  | Reshoring has been hot in June. The U.S. Department of Commerce’s Investment Advisory Council (IAC) reported on June 9 its recommendations, including reshoring of semiconductors and pharmaceuticals. The Reshoring Initiative’s Harry Moser teamed up with TEVA’s Terry Creighton, the driving force on the pharma recommendation, and played a leading role in expanding the focus of IAC to include reshoring in addition to foreign direct investment (FDI). At the meeting, Harry advocated for an even greater focus on reshoring and followed up with Under Secretary Farrell, offering the Reshoring Initiative’s help.
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 | The senior Commerce staff leading the meeting included from left to right: Gina Raimondo, Secretary of Commerce; Don Graves, Deputy Secretary of Commerce; Diane Farrell, Acting Under Secretary for International Trade; and Dale Tasharski, Deputy Director General of the U.S. & Foreign Commercial Service. | | |
On June 8, 2021, the Biden Administration announced its immediate actions based on Executive Order 14017 "America’s Supply Chains." The actions include major improvements in self-sufficiency in semiconductor chips, pharmaceuticals, rare earth minerals and electric vehicle (EV) batteries. These emergency actions are needed because we have allowed so many supply chain gaps to develop. The Reshoring Initiative recommends also attacking the root cause: U.S. lack of price competitiveness. | | |
| 2020 Data Report: 1 Million Jobs Added Since 2010, with Potential for More |
| Jobs Announced, Reshoring + FDI, Cumulative 2010-2020 |  | Despite the economic slowdown caused by COVID, reshoring numbers were up in 2020. Reshoring and foreign direct investment (FDI) job announcements for 2020 were 160,649, bringing the total jobs announced since 2010 to over 1 million (1,057,054). Additionally, the number of companies reporting new reshoring and FDI set a new record: 1,484 companies. All jobs added are good news, but at this rate, it will take 30 years to reach President Biden’s goal of five million jobs. Actions needed to accelerate the trend are presented in the Report. | | |
Top Takeaways from the 2020 Report - President Biden is prioritizing reshoring. The gaps in Biden’s plans need to be addressed in order to achieve his goal of returning 5 million more jobs. Details of needed actions are also in our Competitiveness Toolkit.
- In 2020, U.S. reshoring set a record of 109,000 jobs and outpaced FDI for the first time since 2013. COVID/supply chain uncertainty has resulted in companies emphasizing operations in their home countries.
- Recent national initiatives to shorten and close supply chain gaps for essential products aim to make the U.S. less vulnerable. The following industries are most likely to benefit: personal protective equipment (PPE), medical, semiconductor chips and defense. Medical equipment and PPE are the first responders of new reshoring and FDI, with 2020 cases up nearly 2,000% and jobs up 400% from 2019.
- There is continued growth in efforts by Manufacturing Extension Partnerships (MEPs), economic development organizations (EDOs) and states to enable reshoring. The Reshoring Initiative is deeply involved in these efforts with its Import Substitution Program (ISP). As a measure of corporate interest, the demand for this service is more than ten times the rate of 2019.
- We anticipate 2021 reshoring and FDI job announcements to be near 200,000, up by at least 25% from 2020.
See the full report: Reshoring Initiative® 2020 Data Report: COVID Drives Cumulative Jobs Announced Past 1 Million | | |
Reshoring Canada
Reshoring Canada Congratulations to Tony Clement, former Canadian federal Industry Minister, for starting and sharing the lead of Reshoring Canada. Cooperation in North American reshoring will make all three countries stronger.
Your New China Problem
"The calculus for doing business in China just changed. Are you ready for the next front in the culture wars?" The Reshoring Initiative believes CEOs have a viable alternative for much of their China imports: use TCO to guide reshoring. Replace an image negative with a positive.
The Challenge of Rebuilding U.S. Domestic Supply Chains
This Harvard Business Review article focuses on Massachusetts-based Shawmut, which scrambled to expand production to meet the soaring demand for N95 masks and hospital gowns during the pandemic. It is an analysis of Shawmut's efforts to restore a supply chain that has long gone offshore and "offers lessons for how to rebuild the U.S. commons for critical sectors of the economy.
Reshoring Could Drive $443 Billion in U.S. Economic Opportunity
According to the report, 83% of North American manufacturers are likely or extremely likely to reshore production, which is an increase from the 54% of respondents who said they planned to reshore back in March 2020. In particular, the automotive and oil and gas sectors were the most motivated verticals, with plans to add North American suppliers to their supply chains.
Another key takeaway from the Report is that this shift toward reshoring will lead to a massive amount of economic opportunity in the U.S., with the potential to drive $443 billion in economic value over the next 12 months.
The Thomasnet.com platform further reflects the reshoring trend. Thomas users submitted more than $204 billion worth of sourcing requests over the past 12 months, compared to only $69 billion of RFQs in 2018.
| | | Upcoming Events
July 20 – CIPS (Chartered Institute of Procurement & Supply) New England Chapter
July 14 – OKI webinar COVID-19 Impact on Supply Chain
August 19 - IMTS webinar
August 29 – Full Potential Movement podcast
September 19-22 – CSCMP Atlanta
September 30 – SABC Webinar
October 1-3 – Made in America Louisville, KY, Exhibit
October 6 – Richardson, TX, webinar
July 14 – OKI webinar
July 16 – Competitiveness Insights Webinar
August 19 – IMTS webinar
October 1-3 – Made in America, Louisville, KY
October 6 – Wisconsin Manufacturing & Technology show, West Allis, WI
October 14 – Onramp Manufacturing Conference
November 2-5 – AMT MFG 2021 & MT Forecast, Denver, CO Exhibit
November 5 – Lehigh University Fall Forum
See RI Events for the latest updates. | | | Need Help Reshoring?
We have developed programs to help companies, MEPs, EDOs and Governments increase domestic production and sourcing. Click on the links and/or contact us for further guidance.
| | | The Reshoring Initiative seeks volunteers to help enable reshoring. We are looking for several experienced manufacturers to commit 5 or 10 hours/week for at least a few months. Helpful qualifications include Microsoft Excel competence, general manufacturing knowledge and comfort talking to other manufacturers by phone or via Zoom. Successful volunteer work could lead to paid part-time contract work.
Thanks to all our readers, our sponsors and the companies who use TCO to reshore.
Want to help? Please consider making a tax-deductible donation to the Reshoring Initiative. Also, remember to use the RI Smile link when you make purchases on Amazon.
Sincerely,
| | | Why Reshore
Reshoring is an efficient way to increase corporate profits, reduce imports and regain manufacturing jobs in the United States. It's also the fastest and most efficient way to strengthen the U.S. economy. | | |
